FROM: U.S. LABOR DEPARTMENT
US Department of Labor sues San Francisco's California Pacific Bank
Nearly $1.4 million in employee stock ownership assets allegedly mismanaged
SAN FRANCISCO — The U.S. Department of Labor has filed a lawsuit against San Francisco's California Pacific Bank and four of its directors. The complaint alleges that the bank, its CEO and three additional fiduciaries of the bank's Employee Stock Ownership Plan mismanaged plan assets resulting in potential plan losses totaling approximately $1.4 million. The suit asks the court to require the fiduciaries to restore all losses they caused to the plan.
The department alleges that after terminating the ESOP in 2010, the fiduciaries violated the Employee Retirement Income Security Act by failing to liquidate and distribute plan assets in cash to plan participants as required. Because the bank is not a publicly traded company, participants were left with shares of the company's stock they could not easily liquidate for cash, if at all.
Agency investigators determined that the participants would have received approximately $1.24 million if the plan's 97,237 shares had been liquidated and distributed in cash at their assessed December 2009 value. The lawsuit also alleges that in 2011, $81,407 was improperly diverted to the bank, and in 2012, the fiduciaries improperly transferred nearly $70,000 in plan assets to the bank. Finally it is alleged that the bank also held plan assets in non-interest bearing accounts, making assets available for bank use without charge and without accruing interest on the funds for the benefit of the plan.
The complaint names California Pacific Bank CEO and board member Richard Chi, who served as the plan administrator and a plan trustee. Also named are board members and trustees Akila Chen, Kent Chen, and William Mo. The suit asks the court to permanently remove all four as plan fiduciaries and to appoint an independent fiduciary with control over the plan and its assets. The independent fiduciary would administer the liquidation and termination of the plan. The complaint also seeks to permanently enjoin the defendants from ever serving, directly or indirectly, as a fiduciary or service provider with respect to any employee benefit plan subject to ERISA, and to require them to disgorge to the plan any financial benefits they realized as a result of their violations.
Saturday, August 31, 2013
Friday, August 30, 2013
VELOCITY FUTURES, LLC PAYS PENALTY TO SETTLE CFTC COMPLIANCE CHARGES
FROM: COMMODITY FUTURES TRADING COMMISSION
Velocity Futures, LLC Agrees to Pay a $300,000 Penalty to Settle Charges that It Failed to Comply with Its Minimum Financial Requirements
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Velocity Futures, LLC (Velocity), a registered Futures Commission Merchant (FCM) headquartered in Houston, Texas, for failing to comply with the minimum financial requirements for FCMs.
According to the Order, Velocity failed to meet its minimum adjusted net capital requirement because it failed to properly account for certain events relating to two arbitration awards issued by the National Futures Association (NFA) on June 16, 2011, against Velocity and its Chief Executive Officer (CEO), and Velocity’s subsequent settlement of those awards for $2 million. Pursuant to that settlement, Velocity agreed to pay a $1 million lump payment, and Velocity’s CEO agreed to pay the remaining $1 million over 24 months. According to the Order, Velocity paid and properly accounted for the original $1 million lump sum payment. However, Velocity also paid the remaining installments on behalf of its CEO pursuant to the CEO’s indemnification claims. According to the Order, it was reasonable and probable, under generally accepted accounting principles, that the $1 million in deferred payments owed by Velocity’s CEO was, in fact, a liability of Velocity and should have been recorded as such on Velocity’s financial statements.
The Order further finds that Velocity received an $800,000 cash infusion from its parent company that it improperly classified as a subordinated loan. Under CFTC Rules, proceeds from a subordinated loan may be included in a company’s assets in calculating adjusted net capital. According to the Order, however, Velocity’s classification of this cash infusion was improper, because it was not made pursuant to a valid subordinated loan agreement that was approved by NFA, as required by CFTC Rules. Consequently, according to the Order, the cash infusion should have been treated as a non-subordinated loan and should not have been counted towards Velocity’s adjusted net capital requirements
According to the Order, once Velocity properly accounted for these events, it failed to meet its minimum adjusted net capital requirement for 264 days, from June 16, 2011 to March 6, 2012.
The Order imposes a $300,000 civil monetary penalty and a cease and desist order on Velocity for these violations.
The CFTC appreciates the assistance of NFA.
CFTC Division of Enforcement staff responsible for this action are Tom Simek, Jeff Le Riche, Rick Glaser, and Richard Wagner. Tom Bloom, Kurt Harms, Jan Ripplinger, and Lauren Fulks of the CFTC’s Division of Swap Dealer and Intermediary Oversight also assisted in this matter.
Velocity Futures, LLC Agrees to Pay a $300,000 Penalty to Settle Charges that It Failed to Comply with Its Minimum Financial Requirements
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Velocity Futures, LLC (Velocity), a registered Futures Commission Merchant (FCM) headquartered in Houston, Texas, for failing to comply with the minimum financial requirements for FCMs.
According to the Order, Velocity failed to meet its minimum adjusted net capital requirement because it failed to properly account for certain events relating to two arbitration awards issued by the National Futures Association (NFA) on June 16, 2011, against Velocity and its Chief Executive Officer (CEO), and Velocity’s subsequent settlement of those awards for $2 million. Pursuant to that settlement, Velocity agreed to pay a $1 million lump payment, and Velocity’s CEO agreed to pay the remaining $1 million over 24 months. According to the Order, Velocity paid and properly accounted for the original $1 million lump sum payment. However, Velocity also paid the remaining installments on behalf of its CEO pursuant to the CEO’s indemnification claims. According to the Order, it was reasonable and probable, under generally accepted accounting principles, that the $1 million in deferred payments owed by Velocity’s CEO was, in fact, a liability of Velocity and should have been recorded as such on Velocity’s financial statements.
The Order further finds that Velocity received an $800,000 cash infusion from its parent company that it improperly classified as a subordinated loan. Under CFTC Rules, proceeds from a subordinated loan may be included in a company’s assets in calculating adjusted net capital. According to the Order, however, Velocity’s classification of this cash infusion was improper, because it was not made pursuant to a valid subordinated loan agreement that was approved by NFA, as required by CFTC Rules. Consequently, according to the Order, the cash infusion should have been treated as a non-subordinated loan and should not have been counted towards Velocity’s adjusted net capital requirements
According to the Order, once Velocity properly accounted for these events, it failed to meet its minimum adjusted net capital requirement for 264 days, from June 16, 2011 to March 6, 2012.
The Order imposes a $300,000 civil monetary penalty and a cease and desist order on Velocity for these violations.
The CFTC appreciates the assistance of NFA.
CFTC Division of Enforcement staff responsible for this action are Tom Simek, Jeff Le Riche, Rick Glaser, and Richard Wagner. Tom Bloom, Kurt Harms, Jan Ripplinger, and Lauren Fulks of the CFTC’s Division of Swap Dealer and Intermediary Oversight also assisted in this matter.
Thursday, August 29, 2013
U.S. AND KENTUCKY REACH AGREEMENT WITH AK STEEL CORPORATION RESOLVING CLEAN AIR ACT VIOLATIONS
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, August 21, 2013
United States and the Commonwealth of Kentucky Reach Agreement with AK Steel Corporation to Resolve Clean Air Act Violations
The United States and the Commonwealth of Kentucky have reached a settlement with the AK Steel Corporation (AK Steel) in Ashland, Ky., resolving alleged violations of the Clean Air Act, AK Steel’s title V permit, and the Kentucky State Implementation Plan, announced the Department of Justice and the U.S. Environmental Protection Agency (EPA).
Under the terms of settlement, AK Steel will pay a civil penalty of $1.65 million, of which $25,000 will be paid to the Commonwealth of Kentucky, for the alleged violations that occurred at AK Steel’s former coke production facility in Ashland. AK Steel shut down the coke plant on June 21, 2011. Coke is used as a carbon source and as a fuel to heat and melt iron ore at steel making facilities.
Although AK Steel closed the plant involved in this enforcement action, AK Steel is currently operating the Ashland West Works facility a few miles away from the former coke plant. Under the agreement, AK Steel has agreed to spend at least $2 million on state projects to reduce particulate matter emissions at the Ashland West Works facility.
“This settlement holds AK Steel accountable for years of violations at its now closed coke plant in Ashland,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “As a result of this agreement, state projects to reduce particulate matter emissions at the Ashland West Works facility will continue to improve air quality for area residents for many years to come.”
“This settlement promotes a healthier environment for our citizens and represents a just resolution of this matter,” said U.S. Attorney for the Eastern District of Kentucky Kerry B. Harvey. “We are committed to the effective enforcement of the environmental laws designed to protect the health of our people”
“We are proud to join with our partners in the Commonwealth of Kentucky in this step toward cleaner air and better health for the citizens of Ashland,” said Stan Meiburg, EPA Acting Regional Administrator in Atlanta.
The consent decree was lodged in the U.S. District Court for the Eastern District of Kentucky. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment.
Wednesday, August 21, 2013
United States and the Commonwealth of Kentucky Reach Agreement with AK Steel Corporation to Resolve Clean Air Act Violations
The United States and the Commonwealth of Kentucky have reached a settlement with the AK Steel Corporation (AK Steel) in Ashland, Ky., resolving alleged violations of the Clean Air Act, AK Steel’s title V permit, and the Kentucky State Implementation Plan, announced the Department of Justice and the U.S. Environmental Protection Agency (EPA).
Under the terms of settlement, AK Steel will pay a civil penalty of $1.65 million, of which $25,000 will be paid to the Commonwealth of Kentucky, for the alleged violations that occurred at AK Steel’s former coke production facility in Ashland. AK Steel shut down the coke plant on June 21, 2011. Coke is used as a carbon source and as a fuel to heat and melt iron ore at steel making facilities.
Although AK Steel closed the plant involved in this enforcement action, AK Steel is currently operating the Ashland West Works facility a few miles away from the former coke plant. Under the agreement, AK Steel has agreed to spend at least $2 million on state projects to reduce particulate matter emissions at the Ashland West Works facility.
“This settlement holds AK Steel accountable for years of violations at its now closed coke plant in Ashland,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “As a result of this agreement, state projects to reduce particulate matter emissions at the Ashland West Works facility will continue to improve air quality for area residents for many years to come.”
“This settlement promotes a healthier environment for our citizens and represents a just resolution of this matter,” said U.S. Attorney for the Eastern District of Kentucky Kerry B. Harvey. “We are committed to the effective enforcement of the environmental laws designed to protect the health of our people”
“We are proud to join with our partners in the Commonwealth of Kentucky in this step toward cleaner air and better health for the citizens of Ashland,” said Stan Meiburg, EPA Acting Regional Administrator in Atlanta.
The consent decree was lodged in the U.S. District Court for the Eastern District of Kentucky. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment.
Wednesday, August 28, 2013
SEC HALTS COMPANY IPO, ALLEGES REGISTRATION STATEMENT CONTAINS FALSE AND MISLEADING INFORMATION
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission issued an order to stop an initial public offering (IPO) of a Los Angeles area company before its shares were sold to the public. In issuing its stop order against Counseling International, the Commission determined that the company’s registration statement contains false and misleading information.
According to the SEC’s stop order, Counseling International’s registration statement fails to disclose the identity of the company’s control persons and promoters as required under the securities laws. Among other deficiencies, the registration statement falsely describes the circumstances surrounding the departure of the former CEO.
Stop orders proactively prevent fraud by halting the securities registration process before a company’s stock is sold to the public based on a deficient or misleading registration statement. Counseling International first filed a registration statement in August 2012 for an initial public offering of 764,000 shares of common stock. The registration statement has been amended four times since that filing.
“A company’s registration statement is the bedrock on which its stock is offered to the general public, and Counseling International did not provide the accurate and complete information that investors would be entitled to when deciding whether it’s appropriate to invest in the company,” said Michele Layne, Director of the SEC’s Los Angeles Regional Office. “Rarely do we have the opportunity to prevent investor harm before shares are even sold, but this stop order ensures that Counseling International’s stock cannot be sold in the public markets under this misleading registration statement.”
Counseling International agreed to the issuance of the order instituting the stop order proceeding, and also agreed not to engage or participate in any unregistered offering of securities conducted in reliance on Rule 506 of Regulation D for a period of five years from the issuance of the order.
The SEC’s investigation, which is continuing, has been conducted by Roberto Tercero and Spencer Bendell in the Los Angeles office.
The Securities and Exchange Commission issued an order to stop an initial public offering (IPO) of a Los Angeles area company before its shares were sold to the public. In issuing its stop order against Counseling International, the Commission determined that the company’s registration statement contains false and misleading information.
According to the SEC’s stop order, Counseling International’s registration statement fails to disclose the identity of the company’s control persons and promoters as required under the securities laws. Among other deficiencies, the registration statement falsely describes the circumstances surrounding the departure of the former CEO.
Stop orders proactively prevent fraud by halting the securities registration process before a company’s stock is sold to the public based on a deficient or misleading registration statement. Counseling International first filed a registration statement in August 2012 for an initial public offering of 764,000 shares of common stock. The registration statement has been amended four times since that filing.
“A company’s registration statement is the bedrock on which its stock is offered to the general public, and Counseling International did not provide the accurate and complete information that investors would be entitled to when deciding whether it’s appropriate to invest in the company,” said Michele Layne, Director of the SEC’s Los Angeles Regional Office. “Rarely do we have the opportunity to prevent investor harm before shares are even sold, but this stop order ensures that Counseling International’s stock cannot be sold in the public markets under this misleading registration statement.”
Counseling International agreed to the issuance of the order instituting the stop order proceeding, and also agreed not to engage or participate in any unregistered offering of securities conducted in reliance on Rule 506 of Regulation D for a period of five years from the issuance of the order.
The SEC’s investigation, which is continuing, has been conducted by Roberto Tercero and Spencer Bendell in the Los Angeles office.
Tuesday, August 27, 2013
CFTC FILES NOTICE OF INTENT TO REVOKE WEALTH MANAGEMENT COMPANY'S REGISTRATIONS
FROM: COMMODITY FUTURES TRADING COMMISSION
CFTC Seeks to Revoke the Commodity Pool Operator and Commodity Trading Advisor Registrations of Veruus Wealth Management, LLC
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today filed a Notice of Intent (Notice) to revoke the registrations of Veruus Wealth Management, LLC (Veruus), a registered Commodity Pool Operator and Commodity Trading Advisor.
The Notice alleges that Veruus is subject to a statutory disqualification from CFTC registration based on an Order of default judgment entered by the District Court for the City and County of Denver, Colorado on November 28, 2012. In that private litigation (DRCK LLC, et al, v. Direction Labs, Inc., Veruus Wealth Management, LLC, et al, Case No. 2012CV5305 (Denver Co. D. Ct., 2nd JD, filed August 24, 2012)), the plaintiffs alleged that the defendants solicited them to invest in a Veruus-managed foreign exchange trading account and that they were the victim of civil theft and conversion. The judgment order entered by the Court found Veruus liable for civil theft and conversion of $339,517.79 in customer funds.
CFTC Division of Enforcement staff members responsible for this action are Susan B. Padove, Elizabeth M. Streit, Joy McCormack, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner.
CFTC Seeks to Revoke the Commodity Pool Operator and Commodity Trading Advisor Registrations of Veruus Wealth Management, LLC
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today filed a Notice of Intent (Notice) to revoke the registrations of Veruus Wealth Management, LLC (Veruus), a registered Commodity Pool Operator and Commodity Trading Advisor.
The Notice alleges that Veruus is subject to a statutory disqualification from CFTC registration based on an Order of default judgment entered by the District Court for the City and County of Denver, Colorado on November 28, 2012. In that private litigation (DRCK LLC, et al, v. Direction Labs, Inc., Veruus Wealth Management, LLC, et al, Case No. 2012CV5305 (Denver Co. D. Ct., 2nd JD, filed August 24, 2012)), the plaintiffs alleged that the defendants solicited them to invest in a Veruus-managed foreign exchange trading account and that they were the victim of civil theft and conversion. The judgment order entered by the Court found Veruus liable for civil theft and conversion of $339,517.79 in customer funds.
CFTC Division of Enforcement staff members responsible for this action are Susan B. Padove, Elizabeth M. Streit, Joy McCormack, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner.
Monday, August 26, 2013
OSHA CITES HAGEL METAL FABRICATION FOR WILLFUL VIOLATIONS AFTER WORKER CRUSHED TO DEATH
FROM: U.S. LABOR DEPARTMENT
OSHA cites Hagel Metal Fabrication for willful violations after worker fatally crushed by unguarded machine at Illinois plant
Plant placed in Severe Violator Enforcement Program
EAST PEORIA, Ill. — Hagel Metal Fabrication Inc., has been cited by the U.S. Department of Labor's Occupational Safety and Health Administration for 12 safety and health violations after a 23-year-old worker was fatally crushed Feb. 22 by an automated laser-cutting machine. During the investigation, workers made formal complaints, which prompted two additional OSHA inspections at the East Peoria metal manufacturing plant.
"The company failed to implement the most basic of safety precautions — and the result was a terrible tragedy. This case demonstrates an egregious disregard of worker safety and health," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "Employers have a responsibility to provide a safe workplace."
Three willful violations include: bypassing machine safeguards on two laser-cutting machines and the failures to lock out sources of hazardous machine energy. These safeguards were designed to prevent employees from being in areas of the machine where they could be struck and crushed by moving parts. Two additional serious violations include unguarded open-sided floors and platforms causing a fall hazard. A willful violation is one committed with intentional, knowing or voluntary disregard for the law's requirement, or plain indifference to employee safety and health.
"This tragedy could have been prevented if the company ensured adequate machine guarding, effective lockout-tagout procedures and worker training on hazards," said Tom Bielema, OSHA's area director in Peoria. "The company willfully violated OSHA's Machine Guarding Standard, compromising worker safety and well-being."
After the incident, OSHA found other employees exposed to amputation hazards while operating a power press brake because the guard had not been set up properly. OSHA issued a willful violation for this hazard.
Six serious citations were also issued for failing to: inspect powered industrial trucks before service and to remove them if they are damaged, mark the load capacity of lifting devices, provide training on hazardous energy control procedures and implement an effective lockout/tagout program to protect workers during machine servicing. OSHA also cited the company for work areas with potentially hazardous accumulations of powder coating dusts and for failing to implement an effective respiratory protection program with worksite-specific procedures. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.
OSHA proposed penalties totaling $317,000.
Because of the hazards and the violations cited, Hagel Metal Fabrication has been placed in OSHA's Severe Violator Enforcement Program, which mandates targeted follow-up inspections to ensure compliance with the law. OSHA's SVEP focuses on recalcitrant employers that endanger workers by committing willful, repeat or failure-to-abate violations. Under the program, OSHA may inspect any of the employer's facilities if it has reasonable grounds to believe there are similar violations.
Hagel Metal Fabrication has been inspected by OSHA on seven previous occasions since 1989, resulting in the issuance of 23 citations including willful and serious citations for exposing workers to amputation injuries and machine guarding hazards. There are approximately 90 workers at the company.
The company has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA's area director or contest the findings before the independent Occupational Safety and Health Review Commission.
OSHA cites Hagel Metal Fabrication for willful violations after worker fatally crushed by unguarded machine at Illinois plant
Plant placed in Severe Violator Enforcement Program
EAST PEORIA, Ill. — Hagel Metal Fabrication Inc., has been cited by the U.S. Department of Labor's Occupational Safety and Health Administration for 12 safety and health violations after a 23-year-old worker was fatally crushed Feb. 22 by an automated laser-cutting machine. During the investigation, workers made formal complaints, which prompted two additional OSHA inspections at the East Peoria metal manufacturing plant.
"The company failed to implement the most basic of safety precautions — and the result was a terrible tragedy. This case demonstrates an egregious disregard of worker safety and health," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "Employers have a responsibility to provide a safe workplace."
Three willful violations include: bypassing machine safeguards on two laser-cutting machines and the failures to lock out sources of hazardous machine energy. These safeguards were designed to prevent employees from being in areas of the machine where they could be struck and crushed by moving parts. Two additional serious violations include unguarded open-sided floors and platforms causing a fall hazard. A willful violation is one committed with intentional, knowing or voluntary disregard for the law's requirement, or plain indifference to employee safety and health.
"This tragedy could have been prevented if the company ensured adequate machine guarding, effective lockout-tagout procedures and worker training on hazards," said Tom Bielema, OSHA's area director in Peoria. "The company willfully violated OSHA's Machine Guarding Standard, compromising worker safety and well-being."
After the incident, OSHA found other employees exposed to amputation hazards while operating a power press brake because the guard had not been set up properly. OSHA issued a willful violation for this hazard.
Six serious citations were also issued for failing to: inspect powered industrial trucks before service and to remove them if they are damaged, mark the load capacity of lifting devices, provide training on hazardous energy control procedures and implement an effective lockout/tagout program to protect workers during machine servicing. OSHA also cited the company for work areas with potentially hazardous accumulations of powder coating dusts and for failing to implement an effective respiratory protection program with worksite-specific procedures. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.
OSHA proposed penalties totaling $317,000.
Because of the hazards and the violations cited, Hagel Metal Fabrication has been placed in OSHA's Severe Violator Enforcement Program, which mandates targeted follow-up inspections to ensure compliance with the law. OSHA's SVEP focuses on recalcitrant employers that endanger workers by committing willful, repeat or failure-to-abate violations. Under the program, OSHA may inspect any of the employer's facilities if it has reasonable grounds to believe there are similar violations.
Hagel Metal Fabrication has been inspected by OSHA on seven previous occasions since 1989, resulting in the issuance of 23 citations including willful and serious citations for exposing workers to amputation injuries and machine guarding hazards. There are approximately 90 workers at the company.
The company has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA's area director or contest the findings before the independent Occupational Safety and Health Review Commission.
Sunday, August 25, 2013
IRS STARTS ONLINE FINANCIAL INSTITUTION REGISTRATION UNDER FOREIGN ACCOUNT TAX COMPLIANCE ACT
FROM: U.S. INTERNAL REVENUE SERVICE
IRS Opens Online FATCA Registration System
IR-2013-69, Aug. 19, 2013
WASHINGTON — The Internal Revenue Service announced the opening of a new online registration system for financial institutions that need to register with the IRS under the Foreign Account Tax Compliance Act (FATCA).
Financial institutions that must register with the IRS to meet their FATCA obligations can now begin the process of registering by creating an account and providing required information. Financial institutions will also be able to provide required information for their branches of operation and other members of their expanded affiliate groups in which the financial institution is the lead organization.
The registration system, designed to enable secure account management, is a web-based application with around-the-clock availability.
Within a secure environment, the new registration system enables financial institutions to:
•establish online accounts;
•customize home pages to manage accounts;
•designate points of contact to handle registrations;
•oversee member and/or branch information; and
•receive automatic notifications of status changes.
Financial institutions are encouraged to become familiar with the system, create their online accounts and begin submitting their information. Starting in January 2014, financial institutions will be expected to finalize their registration information by logging into their accounts, making any necessary changes and submitting the information as final.
As registrations are finalized and approved in 2014, registering financial institutions will receive a notice of registration acceptance and will be issued a global intermediary identification number.
The IRS will electronically post the first IRS Foreign Financial Institution (FFI) List in June 2014, and will update the list monthly. To ensure inclusion in the June 2014 IRS FFI List, financial institutions will need to finalize their registrations by April 25, 2014
IRS Opens Online FATCA Registration System
IR-2013-69, Aug. 19, 2013
WASHINGTON — The Internal Revenue Service announced the opening of a new online registration system for financial institutions that need to register with the IRS under the Foreign Account Tax Compliance Act (FATCA).
Financial institutions that must register with the IRS to meet their FATCA obligations can now begin the process of registering by creating an account and providing required information. Financial institutions will also be able to provide required information for their branches of operation and other members of their expanded affiliate groups in which the financial institution is the lead organization.
The registration system, designed to enable secure account management, is a web-based application with around-the-clock availability.
Within a secure environment, the new registration system enables financial institutions to:
•establish online accounts;
•customize home pages to manage accounts;
•designate points of contact to handle registrations;
•oversee member and/or branch information; and
•receive automatic notifications of status changes.
Financial institutions are encouraged to become familiar with the system, create their online accounts and begin submitting their information. Starting in January 2014, financial institutions will be expected to finalize their registration information by logging into their accounts, making any necessary changes and submitting the information as final.
As registrations are finalized and approved in 2014, registering financial institutions will receive a notice of registration acceptance and will be issued a global intermediary identification number.
The IRS will electronically post the first IRS Foreign Financial Institution (FFI) List in June 2014, and will update the list monthly. To ensure inclusion in the June 2014 IRS FFI List, financial institutions will need to finalize their registrations by April 25, 2014
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